Datadog is a monitoring service that aggregates metrics from multiple sources and provides a centralized platform for teams to observe and operationalize cloud and microservices infrastructures. Sentry's integration with Datadog allows users to capture events and errors directly within their Datadog dashboards, correlating them with metrics and data points from other systems. This integration enables teams to tackle issues as soon as they arise, streamlining the error tracking process and reducing the need for manual log file analysis.